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Online MBA

What Are the Measurable Benefits of an MBA?

The average ROI for an online MBA is 2.5 years

We all know that experts disagree on many things that impact our daily lives. Is coffee good for you or not? What about red wine? How much exercise is enough to ensure a healthy lifestyle?

With experts disagreeing on so much, it is especially satisfying when you find some advice that stands the test of time. For business professionals, one enduring piece of sound advice is going back to school to earn your Master of Business Administration (MBA).

There are many measurable benefits of an MBA, including the increased potential for a higher salary and more opportunities for career advancement.

Business professionals have been pursuing MBAs for generations, so there is a lot of data and an abundance of empirical evidence that shows the benefits of holding the degree. And if we want to put it in monetary terms, we can accurately measure the ROI of an MBA.

Impressive Salary Increase

In a peer-reviewed study that examined pre-MBA and post-MBA earning power, the authors found that MBA grads earned 50 percent more than pre-MBA workers. Five years after graduation, those with MBAs earn up to 80 percent more that those without.

Of course, the costs to earn an MBA can be substantial, but with such significant earning potential after graduation, it is easy to see the positive ROI of an MBA. A recent GMAC study shows that students realize an ROI in less than four years. It’s even better for online MBA grads – the average time to recoup the investment is just two and half years.

Job Stability

An MBA is personally rewarding

Figuring the true return on your investment over the long term requires you to estimate future earnings. One factor in the MBA’s favor is that historically, unemployment among MBA graduates is extremely low. In 2013, while our economy was slowly recovering from the recession, MBA graduates from two-year programs had a whopping 95 percent employment rate. Combine this with the potential salary increase associated with earning an MBA and you see how dramatically your lifetime earning potential can jump.

Personal Fulfillment

But can a researcher measure the personal fulfillment that earning an MBA can bring? The GMAC survey shows that 93 percent of online MBA graduates found their education to be personally rewarding. You can feel good knowing that you took the initiative and developed the focus and discipline necessary to complete an advanced degree, a potentially significant steppingstone in your career growth.

Learn more about the Baylor University online MBA program.


Poets & Quants: MBA Employment: A Whopping 95% In U.S.

Forbes: MBA Pay

GMAC 2016 Alumni Perspectives Survey Report

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